We live in time of 'takeaway' politics

Our government is living beyond its means and, as evidenced by our ever increasing debt, is having no success being fiscally responsible.

The left’s political leadership favors keeping hands off entitlements while increasing taxes on the wealthy. The leadership on the right vows to keep taxes low while reducing entitlements and other spending.

Neither solution will solve the problem. Our federal deficit is so great that spending must be reduced and tax revenue increased. Most Americans understand this.

Robert Samuelson, an economics columnist for Newsweek and the Washington Post, captured the essence of our national dilemma in a recent column. He discussed how in the years after World War II, America’s unprecedented prosperity allowed us to both expand federal spending and reduce taxes.

Medicare and Medicaid, increased Social Security payments, and the creation of other social programs became very popular, and, for a time, affordable.

Tax cuts introduced by President Kennedy and expanded under Presidents Reagan and George W. Bush were also popular.

Samuelson calls this the era of ‘giveaway politics.’ Politicians allocated more and more of our country’s economic resources to the electorate and kept everyone happy.

But starting about thirty years ago, giveaway politics became increasingly unaffordable, and the federal debt began its dramatic expansion. In 1981 our debt was $1 trillion; today it is $15 trillion.

A number of events have caused this runaway debt escalation, but neither political party has acknowledged the economic threat it poses to our way of life. In an act of self-preservation, they continue to borrow in order to keep taxes low, spending high and voters happy.

The demographics of retiring baby boomers, inexorably increasing health costs, and an uncertain global economic future require an era of ‘takeaway politics.’ The country cannot afford the largesse the president and congress promise us. We need to abandon giveaway politics.

But our political leaders continue to tell us their side has the magic formula to easily restore fiscal balance. Keynesian economics and ‘investment’ will forestall painful sacrifices, say politicians from the left. Politicians on the right maintain the American economic engine, if only unburdened by regulation and taxes, will restore prosperity.

Because politicians are more knowledgeable on these issues than most of us, we tend to believe our favored politicians’ words of reassurance. What a big mistake. There is still no free lunch, whether promised from the right or the left.

The question for the country is not whether we have entered an era of Samuelson’s takeaway politics because we have. Today’s turbulent financial crisis in southern Europe illustrates where we are headed if we try to remain in the giveaway era.

No, the real question is how can we accept today’s fiscal reality and begin the process of takeaway politics. Although necessary, it will not be easy.

For starters, today’s politicians have grown up in the giveaway era, and will now have to re-think and reject their giveaway culture. They must overcome their fear and make the transition to a takeaway mindset. Then they must explain the facts, compromise and create a viable plan to assure our economic future.

But voters are not blameless in allowing the charade of fiscal normalcy to continue so long. If politicians cannot change, it is our job in November of 2012 to replace them with true leaders who will.

Former Sen. John Warner, Republican from Virginia, once said, “We politicians find it easy to say yes, but very hard to say no.” His words summarize the problem with today’s giveaway politicians. They don’t have the courage to say no.

Ed Conant is a retired U.S. Navy officer who lives in Savannah. He can be contacted at edconant@aol.com.

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